STOCK MARKET WATCH, Thursday 25 March

[ozymandius]

Thursday March 25, 2004

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 304
DAYS SINCE DEMOCRACY DIED (12/12/00) 3 YEARS, 104 DAYS
WHERE'S OSAMA BIN-LADEN? 2 YEARS, 157 DAYS
WHERE ARE SADDAM'S WMD? - DAY 370
DAYS SINCE ENRON COLLAPSE = 852
Number of Enron Execs in handcuffs = 18
Recent Acquisitions: Skilling
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54

U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL ON March 24, 2004

Dow... 10,048.23 -15.41 (-0.15%)
Nasdaq... 1,909.48 +7.68 (+0.40%)
S&P 500... 1,091.33 -2.62 (-0.24%)
10-Yr Bond... 3.71% +0.00 (+0.08%)
Gold future... 417.40 -2.60 (-0.62%)

DOW..........................NASDAQ.......................S&P

||


GOLD, EURO, YEN and Dollars


~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[ozymandius]

1. WrapUp by Mike Hartman

Market Noise, But Not Much Movement

The morning began with a stronger than expected report from the Commerce Department for February Durable Goods Orders. The number came in showing an increase of 2.5%, while expectations called for an increase of 1.5%. Stocks and bonds showed little reaction to the news, as one trader interviewed on CNBC said that floor traders jokingly refer to the report as the “dirty goods orders.” He explained that traders don’t react strongly because it is expected the number will be revised significantly when the dust finally settles. In fact, the initial report for January indicated a decline of 1.8%, the first revision brought it down to negative 2.3% and the final number showed a decline of 2.7%. The headline number will sound good in the news, but experienced traders and analysts know better. Stocks opened higher, but flip-flopped throughout most of the day showing little conviction in either direction

Same Old Song!

Treasury notes and bonds looked like they were in a coma today as the Treasury Department auctioned another $26 billion of two-year notes. It sure sounds fluffy to hear they “auctioned” Treasury Notes, since it could also be said that the government was forced to borrow another $26 billion to keep the doors open for business. At risk of sounding like a broken record, I have made the observation many times in the past that NOTHING MOVES when the Treasury is forced to borrow more money. I remembered writing specifically on this topic before, so I went back and took a peak at my archived Wrap-ups. Back on October 8th last year I wrote, “Freeze Frame, Nothing Moved Today” at a similar time with Treasury auctions taking place.

April Fool’s Day Approaches

On the flip side, Federal Reserve Bank of Atlanta President Jack Guynn is warning business leaders of a potential increase for interest rates here in the U.S. In particular, the following paragraph in a Bloomberg News article today really caught my attention:

“There is a danger that leaving rates too low for too long might lead to ‘some inappropriate kind of behavior’ by business and in financial markets, and ‘excesses’ in housing, Guynn said. He predicted both hiring and inflation may pick up soon as rapid productivity gains fade and warned businesses not to rely on the current policy environment to last.”

http://www.financialsense.com/Market/wrapup.htm

[54anickel]

2. Mornin' Ozy & all. My those futures look shiny today.

Hopefully there will be no surprises in todays reports and nothing to remind the markets of the geopolitical uncertainty. Wonder who's up today in the 9-11 investigations? :evilgrin:


Blather:
8:20AM: S&P futures vs fair value: +6.1. Nasdaq futures vs fair value: +9.0. Several economic reports will be announced at 8:30 ET. The final Q4 GDP should offer little surprises and is expected to check in at 4.1% versus the prior reading of 4.1%. The final Chain Deflator is expected to come in at 1.2%, in-line with the prior figure. Finally, the Initial Claims report will provide insight on the lay-off picture. The consensus estimate is for a reading of 338K on the heels of last week's 336K.

[UpInArms]

5. Hi 54anickel!

You're right - my body is more creaky than it was yesterday!

Here is the unemployment claim number for the week

Weekly jobless claims rise to 339,000

http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38071.3565393519-813180587&siteID=mktw&scid=0&doctype=806&

WASHINGTON (CBS.MW) -- The number of Americans filing initial unemployment claims rose by 1,000 in the week ended March 20 to 339,000, the Labor Department reported. The four-week moving average that economists say is a better measure of the labor market's strength fell 3,000, to 341,500 from the previous week's upwardly revised figure of 344,500. The weekly and four-week numbers were both slightly higher than expected. A survey of analysts by CBS MarketWatch had produced a consensus forecast for a 4-week figure of 340,750, while the figure for the week ended March 20 was forecast at 338,000.

...more...

I think that the public hearings are over for now - I could be wrong - would love to hear more - but the mushroom effect (keep us in the dark) is very powerful :evilgrin:

[54anickel]

9. Ha! They did end the report on a good note though - guess you

could read it as good news/bad news. Wonder how the markets will take it?

Little creaky today? Wait 'til tomorrow! Then it should start to ease. At least that's how it is for me, but like I said I'm a "puter-tater".

Here's the fishing for good news:

The 4-week average is the lowest since the week of Jan. 27, 2001. Continuing claims for the week ended March 13 fell 46,000 to 3.004 million. The 4-week average declined 21,500 to 3.035 million.

[UpInArms]

3. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 89.01 Change +0.08 (+0.09%)

related article:

Yen hits intra-month high against dollar

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079419915254

The yen rose to fresh highs against the dollar after upbeat comments about the Japanese economic recovery, while concerns about a rate cut in the eurozone kept the euro under pressure.

<snip>

The currency was also supported by data showing that foreign investors increased their holdings of Japanese assets by Y1.08 trillion last week while the February trade surplus was the highest since December 1998.

"The sheer size of these inflows explains why Japan has been behaving as a growth currency and has not performed its traditional role of a safe haven that does well when the growth/risk environment is adverse," said Bhanu Baweja, currency strategist at UBS, in a client note.

Meanwhile, the euro recovered from a recent four-month low against the yen and a three-week low against the dollar. Comments made by members of the European Central Bank this week were taken as signs the bank could be lowering interest rates in the future.

The news sent the euro down two cents against the dollar on Wednesday. On Thursday, it crept higher, to $1.212 against the dollar. A further view on how the European recovery is shaping up is due on Friday, when the influential survey of the German economy by the Ifo institute comes out.

Good Morning Ozy and all the Marketeers! :hi:

Everything is bright and shiny today - we have awakened in a whole new world once again :D

Lots of reports due today - It's MaeveDay!

[Maeve]

7. Did someone mention my name?

Yeah, the Initial Claims are up, but not TOO up (thanks to the revision in last week's number) and the amount of sweet happy talk will kick you into a diabetic coma if you're not careful....

Kids are on spring break, leaving me with little time to attend to the news...plus the fact that it's mostly Bushit anyway. Seems that there has been some awfully heavy lifting to keep the markets from responding to gravity, but that's not surprising. Dubya always has depended on the finances of others to save his bacon...

[54anickel]

10. Mornin' Maeve! I just changed my calendar -

crossed out Thursday and wrote Maeveday above it. Hubby will be wondering what the heck that's all about.

I didn't catch the revision of last week's number, but doesn't surprise me they did it again. At least they stopped with blaming the weather.

Bushit - isn't that what they feed them mushrooms in the dark?

:hi:

[54anickel]

4. EU Decision on Central Bank Post Complicated by Vacancy at IMF

http://quote.bloomberg.com/apps/news?pid=10000085&sid=aO4BPntdXVSI&refer=europe

March 25 (Bloomberg) -- European Union leaders meeting in Brussels aim to choose a successor to European Central Bank board member Eugenio Domingo Solans, a decision that has become entwined with the quest for a new chief of the International Monetary Fund.

Solans, 58, steps down from the ECB in May and Spain wants another national to replace him. Spain is also fielding a candidate to replace Horst Koehler, 61, who quit the IMF to run for Germany's presidency. EU leaders are unlikely to give both jobs to Spaniards, said economists including Paul De Grauwe, who was twice Belgium's candidate for an ECB board seat.

``The selection process is just pure politics and nothing to do with qualifications,'' De Grauwe said in a telephone interview. ``As soon as you have two spots like this, then the number of combinations and possibilities increases and the outcome becomes more unpredictable.''

big snip>

`Horse-Trading'

Spain's new Socialist government, led by Jose Luis Rodriguez Zapatero, is also making a bid to replace Koehler at the IMF and has won backing from Belgium and Luxembourg for outgoing Finance Minister Rodrigo Rato as its candidate.

``Given that Rato seems to be heading for the IMF, it looks like it will be difficult to have a Spanish candidate for the ECB,'' said Lorenzo Codogno, co-chief economist for Europe at Bank of America Corp. in London. ``It seems that the Belgian candidate has more chances now.''

Ireland and Belgium have never been represented on the ECB's board. Praet, who was formerly Belgian Finance Minister Didier Reynders' chief of staff, was praised last month by neighboring countries Luxembourg and the Netherlands. His nomination came after two failed Belgian attempts to secure a post on the board for De Grauwe.

nutter big snip>

France wants to propose Jean Lemierre, the head of the European Bank for Reconstruction and Development, to replace Koehler at the IMF, La Tribune reported March 22, without saying where it obtained the information.

``Given the French-American relationship, it might not be too easy,'' said Codogno. France may also face objections to its bid on the basis that Trichet, a French national, has secured Europe's top central banking position through 2011.

[teryang]

6. Morning hype- happy days are here again!

Market downtrend over! Welcome to the whip saw.

[JNelson6563]

18. haha Good one!

the whip saw

<snarf> :toast:

[ozymandius]

8. Economy Grew at 4.1 Pct. Rate in 4th Qtr.

WASHINGTON (Reuters) - The U.S. economy's growth rate slowed in the final three months of 2003, the government said on Thursday in its final look at fourth-quarter gross domestic product, while businesses enjoyed a second straight year of double-digit profit growth.

The Commerce Department said GDP - which measures the output of goods and services produced in the United States - rose at a 4.1 percent annual rate in the fourth quarter, down from the blistering 8.2 percent annual rate seen in the prior quarter. The figure was the same as the agency's second estimate a month ago and in line with Wall Street economists' estimates.

story

[54anickel]

12. Oh my, look at all those revisions mentioned at the end of the article -

now I don't know if we are comin' or goin' :crazy:

I found this part interesting as well:

After-tax corporate profits rose 7.6 percent in the fourth quarter, a slowdown from the 10.1 percent gain in the third quarter. For 2003, the department said after-tax profits were up a hefty 19.2 percent. That was down, however, from 2002's 24.6 percent increase in profits.

Part of the decline can be traced to larger corporate tax bills. Commerce said tax liabilities increased 15.3 percent in 2003, after a drop of 3.0 percent in 2002.

snip>
Government spending, however, was revised downward, falling at 0.1 percent rate from a 0.8 percent increase in the preliminary report.

Huh? :smoke:

[ozymandius]

11. Next crash? Sorry, you won't hear it coming - by Paul B. Farrell

Unpredictable external events will collapse market in 2004

LOS ANGELES (CBS.MW) -- Back on March 20, 2000, just before the Nasdaq peaked, I wrote column titled "Next crash? Sorry, you won't hear it coming." You didn't have to be a psychic to know the crash was coming ... and yet people didn't listen.

<cut>
The new science of investor psychology, behavioral finance, tells us why: Investors tend to minimize or totally deny bad news, like a coming crash. We have an "optimism bias," with a mental valve in our brains that actually filters bad news out of our ears.

Signs point to trouble

<cut>
As a result of the Afghan and Iraq wars the global political landscape has become more destabilized than before. The Israeli roadmap for peace has collapsed. The Pakistani offensive against al-Qaida now looks like a farce. And the post-Madrid television warnings from bin Ladin's mastermind al-Zawahiri that "death brigades" are 90 percent in place to carry out new terrorists' attacks inside America's borders have an ominous promissory ring to them, as did the warnings of the blind cleric during his trial after the 1993 bombing of the World Trade Center.

<cut>
This time it is different. A couple quick wars in Afghanistan and Iraq? No, we are already mired in World War III, a global cultural war that has been accelerating for over a decade, and we must fight enemies who have made it clear in no uncertain terms that they will be trying to kill us and our way of life for generations.

editorial

[54anickel]

14. Interesting article -

While I take issue with a couple of his remarks, all in all, I'm for anything that will wake up the little guy to the precarious state they and their money are in these days.

[ozymandius]

13. Surge in steel prices creates waves in US auto sector

DETROIT, United States (AFP) - Soaring steel prices have roiled the ranks of US auto suppliers, pushing some to the brink of bankruptcy, and threatening to disrupt the multi-billion dollar US automotive industry.

<cut>
The increase in material costs has been felt most acutely by the smaller suppliers that are most vulnerable to price fluctuations, but it's gradually becoming an issue for automakers who are vulnerable to disruptions in their supply chains.

"This is a very fragile situation that may affect delivery and possibly shut down plants," said Neil de Koker, president of the Original Equipment Suppliers Association that represents auto suppliers.

<cut>
In hearings on Capitol Hill earlier this month, representatives of the Emergency Steel Scrap Coalition warned that the crisis could result in steel shortages and bankruptcies within weeks.

story

[ZR2]

15. The information I get from our suppliers

is that China is buying up anything and everything steel they can get thier hands on. Apparently they are in some kind of huge building boom over there.

[CaptainClark23]

16. huh, maybe we were too hasty

in shipping the hundreds of tons of unexamined steel from the WTC to India and China.

[54anickel]

17. Caterpillar in the news -

http://www.socialistworker.org/2004-1/492/492_11_Caterpillar.shtml

Showdown at Caterpillar?

THE UNITED Auto Workers (UAW) could be on another collision course with Caterpillar Inc. UAW members voted by 96 percent on March 21 to authorize a strike at Caterpillar, the heavy equipment manufacturer, when the labor contract at the company expires April 1.

The company provoked two major strikes in the early and mid-1990s that led to the UAW’s greatest defeat in decades. Workers had little information about negotiations prior to the vote, as management and union officials imposed a blackout on information to the press.

However, a source close to union negotiators reported several weeks ago that Caterpillar initially sought concessions on 69 issues. The most important of these are the length of a contract--a six-year deal--and health care. Cat wanted caps on health care costs that are retroactive to 1991, different health plans for new hires, retirees and other groups of workers, and co-pays that could reach $4,000 to $5,000 per year by the end of the proposed contract in 2010.

Management also wanted to increase the temporary layoff period from 10 to 15 weeks, and eliminate time-and-a-half pay for overtime and its replacement by a supplemental pay of 25 percent. Caterpillar signaled its intention to play hardball in December, when it filed a lawsuit against a new state law banning the use of workers from temporary agencies from being used as permanent striker replacements.

snip>
At Caterpillar, the UAW represents a much smaller percentage of the Caterpillar workforce, having dropped from 40,500 in 1979 to 15,100 in the early 1990s to about 8,000 today--about 12 percent of the company’s employees. Nevertheless, if it comes to a strike or lockout, Cat workers still have enormous leverage at the company.


http://www.lincolncourier.com/news/04/03/23/e.asp
Caterpillar workers overwhelmingly authorize strike

http://www.miami.com/mld/miamiherald/business/national/8265790.htm
UAW Workers at Caterpillar Plants Authorize Strike

[54anickel]

19. Starting numbers 9:49 (wanted to capture these early - due to LBN)

Dow 10,111.26 +63.03 (+0.63%)
Nasdaq 1,930.41 +20.93 (+1.10%)
S&P 500 1,097.78 +6.45 (+0.59%)
30-yr Bond 4.685% +0.021


On edit:
Wanted to get these out there in case there is a response to the terrorist threat just reported in LBN

BREAKING - Texas oil refineries on alert (FBI - terrorist attack)
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x443567

Blather:
9:45AM: Indices open up in line with futures indications...there isn't a lot of hard news to account for the gains...the economic numbers were good, but in line with expectations...new claims remained at low levels and suggests that layoffs have declined...the Nasdaq gets off to the best relative start even though Micron (MU 15.65 -0.16) is a top headline stock after their mixed earnings report yesterday after the close...

[54anickel]

21. Nevermind - looks like it was old news, not LBN. Leave it to CNBC to

for some reason contribute to the fear-mongering. :eyes:

[54anickel]

20. Fight or Flight on the Street

http://biz.yahoo.com/bizwk/040325/nf200403257076_db014_1.html

The market was doing so well. By early March, stocks were up 4% as investors feted fourth-quarter 2003 profits that had jumped 28% over the previous year. The U.S. economy was growing at a healthy 4%-plus annual rate. Then on Mar. 5, investors learned just 21,000 jobs were created in February, renewing questions about the economic recovery. Less then a week later, terrorist bombings linked to the al Qaeda network killed 200 people in Madrid.

Those events triggered a stock slide that has the benchmark Standard & Poor's 500-stock index down nearly 2% for the year. On Mar. 24, stocks seemed to stabilize after a four-session losing streak fueled by fears of terrorism and a weak U.S. economy. But "March Madness" has many investing pros worried about the outlook for stocks. "We expect...the market's decline will get worse before it's over," Gail Dudack, chief investment strategist for SunGard Institutional Brokerage in New York, wrote in a recent note to investors.

BUYING OPPORTUNITY? Thank goodness what Wall Street cares about most -- corporate performance -- still looks good. Profits of S&P 500 companies are expected to increase 13.6% in fiscal 2004, according to earnings tracker Thomson First Call. That's not as impressive as the 18.4% jump in fiscal 2003, but it's hardly a disaster. Indeed, on Mar. 24, separate reports showed new-home sales and orders for big-ticket goods like airplanes were stronger than expected in February.

"The economic fundamentals haven't largely changed" says Joel Naroff of Naroff Economic Advisors in Holland, Pa. He blames the sell-off on investors realizing "the market had made up a tremendous amount of ground, and...(they) started asking the logical question: How do we do well from here?"

That's the question BusinessWeek Online asked a number of experts. Several pros say the recent downswing has made stocks more attractive. "This is a buying opportunity -- (though) not a screaming one," says Jeff Kleintop, chief investment strategist at PNC Advisors in Philadelphia, who adds: "We will probably see 7% to 8% upside between here and the end of the year." Perhaps. Here's what he and some others are saying about the topics most worrisome to investors:

more...

[UpInArms]

22. research shows "official reports" are WRONG

http://www.miami.com/mld/miamiherald/business/national/8258155.htm

U.S. Economy Recovering at Only Half Official Rate, Research Shows

Mar. 21 - America's buoyant economic recovery could largely be a statistical illusion, according to research released this weekend.

Last year's growth may be half the official figure, which would explain the lack of job creation which is damaging President Bush's re-election chances.

A growing number of discrepancies are emerging in America's economic numbers, including a dramatic over-estimation of manufacturing output. The latest analysis from Goldman Sachs suggests that the US economy may have grown by only about 2.2 percent in the year to the fourth quarter of 2003, considerably less than the official 4.3 percent.

Jan Hatzius, a senior economist at Goldman Sachs, has added his voice to a growing band who believe that the growth figures are overstating the true recovery of the US economy. Errors in calculating manufacturing output and income growth explain why unemployment, on all measures, has consistently disappointed the markets in recent months, the research claims.

Hatzius said: "Over the last year, the official data show real gross domestic product (GDP) growing a sturdy 4.3 percent. Yet, non-farm payrolls are up only 0.1 percent. It is hard to overemphasise how unusual this combination is."

The results of the alternative, survey-based method have also been weak, recording a 1.5 percent rise in household employment since November 2001, the smallest gain of any post-war business cycle, despite the dramatic rebound in US economic growth on the official figures.

Big flaws in the manufacturing data are responsible, according to the Goldman research. Real GDP for goods, which accounts for 33 percent of total GDP, has surged by 8 percent over the past year, the official figures say, more than double its 3.6 percent long-term trend. But these figures are in complete contradiction with the standard data for industrial production, a closely-related and far more reliable measure calculated using separate data.

...more...

[54anickel]

23. OMG! Have they replaced floride with some sort of thruth serum in the

water supply?
Doubt this will ever make it to the mainstream media.

[JNelson6563]

24. Pravda will kill it

Some poor schmuck will say it on CNBC and they'll all laugh and point and roll their beady eyes. That will be about it. Someone may then go on to say "He's getting on in age...."

Ugh.

Julie

[UpInArms]

25. the shooting of the messengers

by the news-whores makes me gag :puke:

Those things with no credibility attacking the credibility of others has reached a crescendo.

Perhaps silence would be the next logical note?

And in the silence the truth might sing out.

Ah, hope springs eternal ...

[nolabels]

26. I will bet there could be some people who could put together the.........

numbers that say the economy shrunk. Many more who might have seen their jobs transfered out of the country who would say its worse than that. Cooking the books is a standard practice when groups, organizations and countries start to implode.

The problem they have today is the truth is starting to overrun the liars faster than they can lie :nopity:

[Career Prole]

32. Thanks! I just sent this

to Lou Dobbs to see if he'll broach the subject.

Important! Please Read!
Lou,
You're an economist...is this article accurate?

http://www.miami.com/mld/miamiherald/business/national/8258155.htm

Quote: "Mar. 21 - America's buoyant economic recovery could largely be a statistical illusion, according to research released this weekend.
Last year's growth may be half the official figure, which would explain the lack of job creation which is damaging President Bush's re-election chances.
A growing number of discrepancies are emerging in America's economic numbers, including a dramatic over-estimation of manufacturing output. The latest analysis from Goldman Sachs suggests that the US economy may have grown by only about 2.2 percent in the year to the fourth quarter of 2003, considerably less than the official 4.3 percent."

Have they been lying about the "robust economy" too?
Please address this.

[54anickel]

44. It'll be interesting to see if he'll touch this one.

[54anickel]

27. 11:16 numbers and blather

Dow 10,116.97 +68.74 (+0.68%)
Nasdaq 1,939.36 +29.88 (+1.56%)
S&P 500 1,098.65 +7.32 (+0.67%)
30-yr Bond 4.688% +0.024

NYSE Volume 456,490,000
Nasdaq Volume 646,687,000

10:55AM: Oil futures are down significantly this morning, helping airline stocks and the market in general, but placing oil stocks amongst the weakest sectors...that is also taking some of the sting out of any inflation concerns associated with the higher than expected 1.5% deflator in the GDP number this morning...Wal-Mart (WMT 59.67 +1.09) has retailing a strong sector...it and Procter & Gamble (PG 104.09 +1.07) are the only Dow 30 stocks up more than $1, but only four are lower at this time...NYSE Adv/Dec 2009/928, Nasdaq Adv/Dec 1827/905

10:30AM: Indices off their highs, but holding reasonably well...given the action in recent days, many will be looking for any signs of weakness...the SOX semiconductor index (SOX 474.78 +6.64) is off to a solid start but also off its highs...Existing Home Sales report at 10:00 ET came in right at expectations of a 6.12 million annual rate...a solid number...NYSE Adv/Dec 2009/801, Nasdaq Adv/Dec 1809/804

[54anickel]

28. ANALYSIS-Libya seen saving best prizes for the U.S.

http://www.forbes.com/home_europe/newswire/2004/03/25/rtr1311619.html

LONDON, March 25 (Reuters) - British companies have secured an important toe-hold in Libya, seizing on improved relations to line up deals in energy and aviation, but the juiciest prizes in the oil-rich country are likely to go to U.S. firms.

To Libyan leader Muammar Gaddafi, whose country's most coveted asset is its oil and gas, the U.S. dollar speaks much louder than the British pound, oil industry experts said.

"Gaddafi knows the only game in town is Washington, so there'll be a big slice of Libyan oil for the Americans..," said Fred Halliday of the London School of Economics.

He said there was plenty of oil, gas and other business for Western firms, but added: "The United States is the power in the world, the only power with the ability to actually overthrow him, and the only power that might just achieve some of the things Gaddafi wants to see happen."

more...

[UpInArms]

29. Surplus in trade widens in Japan

http://www.iht.com/cgi-bin/generic.cgi?template=articleprint.tmplh&ArticleId=511902

TOKYO The Japanese trade surplus widened in February despite the rise of the yen, the government said Thursday, as imports fell sharply and exports remained near record levels.

The seasonally adjusted trade surplus grew 15 percent to ¥1.25 trillion, or $11.8 billion, the Ministry of Finance said. Imports fell 6 percent. Exports fell 1.4 percent to ¥4.82 trillion, the third-highest level on record and up 10.3 percent from a year earlier. That exceeded market expectations, said Ayako Mitsui, an economist at UBS Securities Japan.

Japanese companies have shielded their earnings from the impact of a strengthening yen by increasing sales volume and expanding in Europe and Asia. Japan had a trade surplus with China for the first time in almost a decade, based on unadjusted figures contained in the report Thursday.

"This year will be a very strong year for the technology industry, especially in the first half," Hajime Sasaki, chairman of NEC and head of the Japan Electronics and Information Technology Industries Association, said Wednesday at a news conference. "We can expect growing demand from China and East Asia."

...more...

[54anickel]

31. Gee, sort of looks like the US is just warming the bench these days

snip>

Net exports accounted for a quarter of Japan's 6.4 percent annual pace of growth in the three months through Dec. 31, the fastest rate in 13 years. Japanese exporters are benefiting from rising consumer spending in China and the United States, their two biggest markets.

The Japanese trade surplus with the United States grew 6.9 percent to ¥604 billion, with a 0.7 percent fall in Japanese exports counterbalanced by an 8.9 percent decline in imports from the United States.

The surplus with the European Union rose 7.8 percent to ¥302.8 billion as exports gained 7.6 percent and imports climbed 7.5 percent.

[54anickel]

30. From the "What's gotten into the IMF" department

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079419915822

IMF endorses Malaysia's currency policy

The International Monetary Fund, which once criticised Malaysia's capital controls imposed after the 1997 Asian financial crisis, on Thursday endorsed the retention of the country's six-year-old currency peg against the US dollar.

But it advised that Malaysia should eventually move towards greater exchange rate flexibility to help manage risks.

In its annual report on Malaysia, the IMF concluded that the currency, the ringgit, was not "substantially misaligned" in the spite of the dollar's fall over the past 18 months.

The IMF directors "saw no convincing case to reconsider the peg at this time" since the real effective exchange rate "remains close to its long-term trend and supported by relatively strong fundamentals".

more...


http://www.reuters.com/newsArticle.jhtml?type=worldNews&storyID=4654430

IMF Acknowledges Failures in Argentina Crisis

WASHINGTON (Reuters) - The International Monetary Fund said on Wednesday long-standing weaknesses in Argentina's economy led to its collapse in 2001, while the global lender acknowledged that its own shortcomings had prevented it from detecting the looming crisis.

In a self-examination of the handling of the crisis, the IMF said it could not single out the sole source of the crash but realized there were several key lessons to be learned, including the need to strengthen its surveillance mechanisms.

"Argentina's experience, with serious imbalances emerging in a country once regarded as a 'star performer' underscores the need for strong and effective fund surveillance in all countries," the IMF said in its assessment.

Reasons for the 2001 collapse in Argentina, hailed as a poster child for emerging markets less than five years earlier, have been widely debated by economists, including whether the fund should bear some responsibility for what happened.

more...

http://www.techcentralstation.com/032504A.html
Time for a New Broom at the IMF

Horst Koehler's hasty departure as the IMF's Managing Director has already started the horse-trading amongst the European nations to whom tradition has assigned the task of nominating a successor. It would be the greatest of pities if in that horse-trading the Europeans lost sight of the fact that perhaps never before has the IMF been in need of more basic reform. For the IMF now has practically nothing to say about the key global exchange rate issues of the day. Moreover, in recent years, the IMF's bread and butter business of lending to crisis-stricken countries has run amok.


Set up in the shadow of the Great Depression by the 1944 Bretton Woods Agreement, the IMF's basic mission was supposed to have been that of "promoting exchange rate stability, maintaining orderly exchange rate arrangements, and avoiding competitive exchange depreciations." In particular, the IMF was to have been the bulwark against a repetition of the destructive competitive depreciations of the 1930s that were thought to have been a major factor in the length of the Great Depression.

Yet today, the IMF offers little leadership in addressing the burning currency issues of the day that have eerily come to resemble those of the 1930s. What, if anything, has the IMF been saying about the fact that the three major global economies -- Europe, Japan, and the United States -- simultaneously want weaker currencies? Does the IMF even raise an eyebrow when Japan engages in massive purchases of US dollars, to the tune of US$100 billion in the first two months of 2004, with the explicit objective of weakening the yen? Or could the IMF be more conspicuously silent about the fact that a host of Asian countries, led by China and India, maintain currencies that are grossly undervalued by any reasonable measure?

One would hope that in their deliberations, the European nations seek a new IMF chief, who might provide the intellectual leadership so sorely needed to deal with today's difficult global exchange rate issues. For only then can one expect the IMF to get back into the game of promoting orderly exchange rates, so necessary for enhancing global prosperity.

more...


And from the WTF division -

http://www.forbes.com/markets/newswire/2004/03/25/rtr1311696.html
US Treasury's Snow says limit to IMF resources

WASHINGTON, March 25 (Reuters) - U.S. Treasury Secretary John Snow said on Thursday that the official resources of multilateral lenders like the International Monetary Fund were limited and not endlessly available.

"We have underscored the limits on the IMF's resources by making clear that there will no quota increase in the foreseeable future," Snow said, referring to the contributions from member countries that generate most of the IMF's financial resources.

bit more, but :wtf: is he spouting off for....

[JNelson6563]

33. We reached Utopia!

12:27 and things couldn't be better!


Dow 10,148.75 +100.52 (+1.00%)
Nasdaq 1,947.25 +37.77 (+1.98%)
S&P 500 1,101.69 +10.36 (+0.95%)
10-Yr Bond 3.739% +0.025


Ah blessed Utopia. Looks a bit different than Sir Thomas More described but what the hell? We'll take it! ;-)

Julie

[UpInArms]

34. here's a curious reporting

regarding PPG Industries

http://www.bucyrustelegraphforum.com/news/stories/20040325/localnews/146579.html

High natural gas prices could force PPG Industries to lay off up to 10 percent of workers at its Crestline automotive glass plant, a company official told lawmakers Tuesday.

<snip>

PPG is not the only Ohio company grappling with high-energy prices. Voinovich said Lubrizol Corp., a chemical company in Wickliffe east of Cleveland, has said it may move operations overseas because energy prices in the United States are too volatile.

Officials from Zaclon Inc., another chemical manufacturer based in Cleveland, said last year that its natural gas costs rose 63 percent between 1999 and 2003.

Despite its troubles with natural gas prices, PPG reported net income of $494 million in 2003 compared to a $69 million loss in 2002. Net sales at the company rose 9 percent to $8.8 billion in 2003.

:wtf:

[54anickel]

36. $494 million just isn't enough these days! We're on hard times,

don-cha-know. And those volatile energy prices are only a US phenomena. :eyes:

[54anickel]

35. Here's an interesting, but very long read - even longer if you go back

to catch up on parts 1 & 2. I haven't finished reading the entire thing yet, but I found it enlightening on first glance.
Something to pick up on those rainy spring days perhaps.

http://www.gold-eagle.com/editorials_04/fox022804.html?page=3

ID MONSTERS, SELF-DECEPTIONS, AND $1,000 GOLD

[54anickel]

37. 1:10 numbers and yada

Dow 10,175.04 +126.81 (+1.26%)
Nasdaq 1,953.35 +43.87 (+2.30%)
S&P 500 1,105.24 +13.91 (+1.27%)
30-yr Bond 4.684% +0.020

1:00PM: The market is running on momentum, at least for today...the National Association of Manufacturers put out a press release today saying that responses from 76 manufacturing firms shows expectations of strong growth this year...from the release: "This is the most optimistic manufacturing survey we have seen in a long time," said Jerry Jasinowski, president of the NAM...furthermore, "On the key employment front, a solid majority (55 percent) expect to increase hiring this year and another third expect to keep employment at the same level"...

:wtf: kinda math is that 55% plus another 3rd?

the report was upbeat on almost every front, with plans to increase capital spending by 9%...interestingly, the report also says that "the escalating structural costs associated with runaway litigation, health insurance, regulations, pensions and soaring energy costs, especially natural gas, are a much bigger factor in the loss of jobs, and reduced ability to hire new workers, than outsourcing"...NYSE Adv/Dec 2271/858, Nasdaq Adv/Dec 2198/794

[54anickel]

38. Wonder if the temptation for profit skimming will prove too much later

in the day. :shrug:

[UpInArms]

40. wasn't this the same

reasoning that PPG just gave for laying off workers?

interestingly, the report also says that "the escalating structural costs associated with runaway litigation, health insurance, regulations, pensions and soaring energy costs, especially natural gas, are a much bigger factor in the loss of jobs, and reduced ability to hire new workers, than outsourcing"

and weren't their profits up by a whole helluva lot from 2002?

This doesn't make much sense to me - higher profits and fewer employees seem to be the mantra for reducing the staffing of their manufacturing arms.

Here's yet another one:

Donaldsonville plant to layoff 72

http://www.2theadvocate.com/livepages4/513.shtml

Financially struggling Mississippi Chemical Corp. said Thursday several parts of its Donaldsonville plant will be permanently shuttered, resulting in about 72 layoffs.

<snip>

Mississippi Chemical filed for bankruptcy protection last year, citing a sagging agriculture industry and soaring prices for natural gas, a key component in the manufacture of ammonia.

The company said its remaining ammonia plant in Donaldsonville will stay open on "swing production," meaning it will operate as needed based on market demand.

...more...

[54anickel]

47. Uh-huh. Old Lou Dobbs must be getting to them n/t

[Chicago Democrat]

39. How can anyone stand this roller coaster- What is causing this Volatility?

Honest, up 1 to 2%, down 1 or 2% per day. 10% swings in one week. Meanwhile annual returns are in the low, low single digits on fixed instruments.

Serious questions- Does anyone have any strong opinions please fellow DUers.

1) Is this volatility normal? It seems worse in the last 10 years. How bought since 1900? If volatility is more, why is that? Is the answer terrorism? Is the answer the great efficiency of an Internet world and market...volatility is a consequence of the information age?

2)The market is insane and irrational, therefore a waste of time to even try to understand anything? Should I just listen to my brokers and concentrate on politics and gardening... This option has been my modus operandi for years, but events of late have made me nervous.

[54anickel]

41. There are lots of theories out there. Some scarier than others. I think

terrorism is more a symptom of our push for "capitalism at any cost" than a cause for our economic woes. But then again, I'm one of those "bleeding heart liberal types".

Theories range from corporate greed, excessive deregulation, fiat money, the K-Wave theory, business cycles, and on and on. The fact that there are so many theories and attempts at explanations sort of point to the fact that no, this is not normal.

Knowledge is power, so no, it is never a waste of time to try to understand any of it.

[CaptainClark23]

42. An analogy

Bear with me for a moment.

I used to be in heavy construction both as an operator and as a pipefitter.

I recall one job on a steep grade, we had just done a cut into the hill and were trying to stablise the hillside above the work site. Very steep incline, pretty hairy. One of our best operators, an old guy named Leroy (looked like santa, but thats another story)was the one to take his dozer up on this grade and work it into stability. This guy had seen it all, done it all, completely unflappable. A Titan amongst men, when it came to knowing his business.

The rest of us watched closely from a distance, as the danger of rolling the machine down the hill was great. All went well, then Leroy's hands and feet starting moving fast, almost a blur as he fought to keep the machine upright and both tracks in contact with the ground. The machine went into very jerky, unpredictable movements as it would start to slide, or tip, and Leroy would react to keep it up. Watching, it seemed to be an almost random series of movements, jerky, senseless. But Leroy, operating the machine, could feel every slight tug of gravity working against him.

Eventually, he was able to regain control of the dozer.


OK so whats my point? Watching the market these days reminds me of watching old Leroy on that hillside. Desperate, reflexive actions to try and keep the whole damn thing from crashing and burning.

For what its worth, I had more faith in Leroy's skill than I do in those vested with keeping the market afloat.

Don't know if this addressed your question, but it sure gave me some insight and a context for this mess. thanks.

[54anickel]

43. Wow Capt, that was great!

[Chicago Democrat]

55. That is a great analogy. I have one too.

I was in the South Dakota once with some buddies and we were drinking and shooting things. Then we went to the Badlands which are like a Martian landscape and even though youre not supposed to go in their we did anyway. So we go way in and then it starts raining and the soil is really strange and soft there and it turns out we can't get out cause its so steep and the clay turned to slick mud.

It was so awful getting out of there so our fun party became a hellish nightmare as we formed human pyramids and falling like wilderbeasts crossing so river full of crocodiles. and it sucked and the guns got filthy and it took hours to get out.

and the market lately and your story remind me of the drunken guys with guns in the badlands after a big unexpected rain.

[teryang]

52. Your right, I'm done

this is the kind of volatility that preceded the last collapse. It is a sign that interest rate increases and tax increases are on the way, if not already here. One hears the published and advertized interest rates. Try to get them! You can't. Only with an ARM. Fixed rates of course are non assignable. My local taxes are through the roof and all state services cost more.

I've heard a lot of "what of it" in the last few days about the huge number of Americans unemployed and underemployed. These people are sustaining a burn rate that will put them into bankruptcy within 6 to 12 months. Then the foreclosure game will begin as the second mortgages at cheap interest rates are defaulted on. This is boom and bust, while econo-pundits talk like there is a chance to make another 7-8 percent before the reality of november sets in. No matter who gets elected, interest rates will skyrocket and liquidity will dry up.

[54anickel]

45. U.S. stocks rally sharply; Nasdaq gains more than 2%

http://biz.yahoo.com/cbsm-top/040325/ecf8d8c9766f42fa135a90144d016479_1.html

NEW YORK (CBS.MW) - U.S. stocks traded sharply higher Thursday, as blue chips posted a triple-digit rise, while the Nasdaq Composite soared 2.5 percent, driven by strength in semi-conductor shares and a second session of gains for Microsoft, the most-heavily weighted company on the tech-rich index.

"What you have is a tug of war with people who have been in the market taking some profits because they are nervous, while those who have been out of the markets buying on the dips," said Alfred Kugel, senior investment strategist at Stein Roe Investment Counsel. "We've had this zig-zag pattern for the last seven weeks, with 100-point moves in both directions, sometimes even in the same day."

Kugel said gains get easier for the market as the Madrid bombings move further into the background, and terrorist concerns abate somewhat, although not entirely.

more...

[54anickel]

46. 2:13 update

Dow 10,194.74 +146.51 (+1.46%)
Nasdaq 1,956.42 +46.94 (+2.46%)
S&P 500 1,106.68 +15.35 (+1.41%)
30-yr Bond 4.679% +0.015

NYSE Volume 952,574,000
Nasdaq Volume 1,303,675,000

2:00PM: The rally continues, as those sectors which have been most beaten up are rallying today...there is increased talk today that job growth will pick up in the months ahead...the low level of new claims, coupled with the upbeat manufacturing employment survey (see 13:00 ET comment below), is adding to recent data that suggests layoffs have clearly slowed, and that hiring plans are picking up...that may not translate into a big gain for March payrolls, but confidence is rising that stronger gains do lie in the months ahead...NYSE Adv/Dec 2322/850, Nasdaq Adv/Dec 2211/830


Yeah, and tomorrow's profit taking blather will point out that all this good news on employment raises the risk of a rate increase sooner rather than later :eyes:

[nolabels]

50. Yea rally, the corporate sector has been ensconced into the ............

Government like never before. They have had a ever increasing ability to legally steal just about anything they can get their eyes on, including the oil well heads in Iraq. Seems to me they should really be whooping it up just about now. Given all the circumstances that has been put in the large corporate business community court they should have no reason to be having quite robust profits just about now.

That's not happening, other things are happening, but the profit motive seems to have taken a back seat.

http://www.fabianfinancial.com/trends.jsp
Market Trends
(As of Wednesday 03/24/2004)

200 Day
Differential
3.3% Fabian Indicator Composite
4.1% Wilshire 5000
3.4% Standard and Poors 500
0.1% Nasdaq 100 (CBOE)
6.2% Russell 2000
2.4% Dow Jones Industrials
Click on any index to see a current chart
(snip)

If you took oil stocks, companies with ties to government contracts and retailers of cut rate merchandise out of that mix, I bet those numbers above would be in the negative.

[54anickel]

48. Corporate Profits Rise in 2003

Gee, ya don't think the drop in the dollar contributed a bit to this as well, do ya?

http://biz.yahoo.com/rb/040325/economy_8.html
WASHINGTON (Reuters) - Corporate profits posted a second straight double-digit annual gain in 2003, the Commerce Department said on Thursday, but a lackluster job market suggests companies remain hesitant to hire.

The reports worried some in the inflation-wary bond market with signs of nascent price pressures.

The Commerce Department said after-tax corporate profits rose 7.6 percent in the fourth quarter, a slowdown from the 10.1 percent gain in the third quarter. For all of 2003, the department said after-tax profits were up a hefty 19.2 percent. That was down, however, from 2002's 24.6 percent increase.

The department also said a price index for personal spending outside of food and energy was revised upward, to a 1.2 percent annual rate from a previously reported 0.7 percent pace. It is the Federal Reserve's favored measure of inflation, and the unexpected revision could make it harder to justify keeping interest rates at current 46-year lows.

[54anickel]

49. FOREX-Market warms to euro after giving it cold shoulder

http://www.forbes.com/markets/newswire/2004/03/25/rtr1312106.html

NEW YORK, March 25 (Reuters) - The dollar fell on Thursday - a byproduct of investors purchasing euro's in a short-covering move that puts profits in their pockets after the euro zone currency suffered several days of setbacks.

The move brushed aside earlier modest dollar strength after a sharp upward revision in the Federal Reserve's favored measure of inflation. That indicated the central bank might not be as patient about raising interest rates.

snip>

"But overall people are looking to sell euros on its rallies and add to short positions because next week's U.S. jobs report is the focus, and people think it will be strong and send the euro down into the high teens," he added.

snip>
Earlier, the final revision of U.S. fourth-quarter gross domestic product came in as expected, up 4.1 percent. However, the core personal consumption expenditures (PCE), a measure of how much inflation is contained within consumer purchases, was revised up to 1.2 percent from the previous estimate of up 0.7 percent.

The news that inflation in the United States is running higher than previously thought raises the ante on U.S. interest rates rising sooner than expected.

Higher rates would be beneficial to the U.S. currency, which has been shunned for higher yielding currencies.

"The sharp upward revision of the PCE does not change the interest rate outlook dramatically, but on the margins, fed funds futures are likely to move a potential rate hike a month or two closer in," said Greg Anderson, senior currency strategist at ABN AMRO in Chicago.

"That is something the FX market is hyper-sensitive to at the moment because the rate gap with the ECB (European Central Bank) could close to zero within six months. That is a dollar positive going forward," Anderson said.

[UpInArms]

51. more M&A layoffs in the offing?

http://arkansasbusiness.com/news/headline_article.asp?aid=36973

Acxiom Says No Comment to Layoff Rumors

Officials at Acxiom Corp. of Little Rock would not comment this week on rumors that it is laying off a significant number of workers as part of corporate restructuring.

Dale Ingram, Acxiom’s spokesman, told arkansasbusiness.com that the company does not comment on rumors.

Word from inside the company is that Acxiom has been dismissing workers since Friday, with more layoffs to come on Tuesday. It was unclear how many workers would lose their jobs or where Acxiom would make cuts.

The information management services company’s last major layoff took place in June 2001, when the company let go 412 workers, or about 7 percent of its workforce, reduced salaries by at least 5 percent and cut expenses in advertising, marketing, incentives and travel.

<snip>

Acxiom is in the process of buying Consodata companies in Europe for $37.5 million in cash, and in January it closed the purchase of Claritas operations in Europe in a deal valued at $40 million.

[UpInArms]

53. the mutterings of a madman (John Snowjob)

http://www.nytimes.com/2004/03/25/business/worldbusiness/25CND-SNOW.html

Treasury Secretary Sees Progress on Chinese Currency

Treasury Secretary John W. Snow told members of Congress this morning that the Bush administration is making progress in its efforts to get China to stop linking the value of its currency to the dollar.

"China agrees that it needs a flexible rate, and we are making a lot of progress in that direction," Mr. Snow said in prepared remarks on the state of the international financial system to members of the House Committee on Financial Services.

Mr. Snow said he intended to stress the need for a change in China's foreign exchange policy when he meets with the head of the People's Bank of China, as the central bank is known, on Friday. And he added that later this month the administration will appoint a "high- level emissary" on economic matters to be stationed in Beijing.

<snip>

Although its global trading accounts are roughly in balance, China is running a huge trade surplus with the United States.

America's trade deficit with China widened in January to $11.5 billion from $9.9 billion in December.

For all of 2003, the United States had a record $124 billion trade deficit with China, the largest imbalance ever recorded with any country.

Mr. Snow reiterated this morning that the Bush administration would like to see the yuan float freely on international markets.

But many economists and policymakers are fearful of what might happen if China suddenly allowed its currency to rapidly appreciate.

...more...

and here's the best for last:

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=4661743

U.S. Treasury's Snow says jobs will come back

WASHINGTON, March 25 (Reuters) - U.S. Treasury Secretary John Snow predicted on Thursday that the American hiring dearth would give way to solid job growth "in the months ahead."

Answering a lawmaker question before the House of Representatives Financial Services panel, Snow said a focus on the labor market was clouding a positive economic picture.

"I think the issue is the apparent ... slower than expected pickup in jobs. And that's getting an awful lot of attention. And the talk of outsourcing is also getting a lot of attention and I think it's creating a negative sort of miasma that colors people's view of what is really a very strong and very well-performing economy," Snow said.

"I am confident we will see those jobs come back. We'll see them come back in the months ahead at a very good clip," he added, saying the "extraordinary high productivity" growth in the United States had weighed on hiring.

On the cusp!
Soon!
In the Months Ahead!
YEEEHAWWW!!

[54anickel]

54. Shouldn't he be disappearing now that it's spring? Perhaps it is the

brain that first melts in a Snowman, the lying lips are obviously last.

[UpInArms]

57. SNARF! LOL! .......eom

[54anickel]

56. 3:11 as we come into the final hour - Interesting blather (aka WTF)

Dow 10,205.04 +156.81 (+1.56%)
Nasdaq 1,958.07 +48.59 (+2.54%)
S&P 500 1,107.23 +15.90 (+1.46%)
30-yr Bond 4.683% +0.019

NYSE Volume 1,139,707,000
Nasdaq Volume 1,518,136,000

3:00PM: The euro has dropped significantly against the dollar the past two days, as the head of Belgium's central bank implied that the European Central Bank might have to cut rates...yesterday, the president of the Central Bank said that the already unimpressive forecast of just 1.6% GDP growth in 2004 for the European Union might not be achieved unless consumer spending picks up...exporters in Europe have been badly hurt by the weak dollar...
the weak dollar, which caused so much hand wringing in the US, actually helped US exports quite a bit in recent qiarters, and boosted the dollar value of overseas profits...now, the dollar is well off its lows against the euro...NYSE Adv/Dec 2293/912, Nasdaq Adv/Dec 2229/857

[UpInArms]

58. NY Fed warns of future risk from US deficits

http://www.forbes.com/markets/newswire/2004/03/25/rtr1312194.html

NEW YORK, March 25 (Reuters) - A swelling U.S. budget deficit threatens the economy's health, a top Federal Reserve official warned on Thursday, while other policymakers reminded investors that interest rates cannot stay low forever.

"The current deterioration in the U.S. fiscal position and the acute decline in the net national savings rate represent risks to the financial system and the economy as a whole," New York Fed President Timothy Geithner told a regional bankers' association.

In his first major speech since taking his new post, Geithner said such looming threats were made all the more worrying by the size of the U.S. current account deficit and the unprecedented scale of financing needed to fund it.

...more...

and then he goes all wimpy so that this isn't his "first" and "last" major speech.

[54anickel]

62. This "new guy" hasn't kept up on the memos. Geez, the 3 of them

sound like the Stooges, all on a different page.
Hey but there's perfect harmony in that outsourcing free-trade mantra.

[54anickel]

65. Perfect "excuse" for the next bout of profit taking? We'll have to wait

and see I guess.
Will Greenspin raise rates?
Will Timothy ever be allowed to speak in public again?
Will we ever learn the true reason behind the mysterious promoting of ARMs and out-sourcing?

Tune in again tomorrow for another exciting episode of As the Fed Turns.

[teryang]

59. The world changed overnight!

Stochastics pegged to the roof all day. Everyone's betting that a bottom is in.

[UpInArms]

60. The rewards of the executions

http://www.wvgazette.com/section/Editorials/200403242/

excerpt:

This wipeout of at least 1,200 area jobs apparently was part of the downsizing strategy of chief executive William Stavropoulos, in his effort to make Dow more profitable for stockholders.

Evidently he’s succeeding. Stavropoulos was rewarded last year with more than $10 million from Dow for his expertise in erasing jobs. The firm’s proxy statement, filed with the U.S. Securities and Exchange Commission, says his 2003 remuneration was:

Salary of $1.3 million, bonus of $2.3 million, $6.5 million in stock options, $163,000 in other payments — plus all the lucrative perks that go to tycoons.

This corporate disclosure spells out a bitter truth about America’s economy: Executives who can skillfully shave the payroll — throwing people out of work — boost a firm’s profitability, raise its stock price, and gain seven-figure windfalls for themselves.

[saigon68]

61. Disgusting

There are only so many jobs to "pare" before the apple disappears

[54anickel]

63. So, what, ther shareholders get tossed the crumbs? I don't get it. Why

would people invest their hard earned money in this scheme. Folks loose their jobs to get the company higher profits, yet most of those profits go into the pocket of the guy swinging the hatchet. How Stoooopid!

:nuke: :grr:

[UpInArms]

64. reminds me of this

http://securities.stanford.edu/news-archive/2002/20021001_Headline02_Green.htm

United States: Chainsaw Al May Discover The First Cut Was Not The Deepest
By: Paula L Green

Global Finance (Volume 16, Issue 10). October 1, 2002
_________________________________________________________________________

EXCERPT: Poor Al Dunlap. Already at the standard retirement age of 65 and worth about $100 million, the former head of Sunbeam has to fork over $500,000 to federal officials and vow that he'll never serve as an officer or director of any public company. The agreement with the Securities & Exchange Commission early last month settled charges that he danced the numbers while head of the appliance company during the late 1990s in order to hide Sunbeam's true financial state from investors. Nicknamed "Chainsaw Al" for his adeptness at making cuts-including laying off thousands of workers at Sunbeam and many more when he was at Scott Paper, Dunlap neither admitted nor denied the allegations that the SEC brought in a civil suit filed last year. The federal securities agency says the fine takes into account Dunlap's $15 million payment to Sunbeam shareholders in a class action suit that won a judge's approval this summer. At first glance, it seems Dunlap, whose name has been linked to accounting fraud since the 1970s when he was president of Nitec Paper, may be getting off lightly. After all, the latest round of corporate scandals at companies such as Enron, WorldCom and Global Crossing has regulators and prosecutors seeking criminal charges and bringing out the handcuffs for some highly publicized arrests. But Chainsaw Al may not yet be out of the woods. Less than a week after his September settlement, reports emerged that the US Justice Department is investigating financial practices at Sunbeam during Dunlap's reign as CEO and chairman.

[54anickel]

66. DOH! "Skating away, skating away-ay, skating away on the

thin ice of a new day-ay-ay-ay-ay".

Chainsaw Al - HA! Very sad statement of our corporate leaders. Quite reflective of Shrub's policies when you think about it though.

[54anickel]

67. Closing numbers & blather

Dow 10,218.82 +170.59 (+1.70%)
Nasdaq 1,967.17 +57.69 (+3.02%)
S&P 500 1,109.19 +17.86 (+1.64%)
30-yr Bond 4.689% +0.025

NYSE Volume 1,481,325,000
Nasdaq Volume 1,951,659,000

Close: It was a very impressive day for the stock market...sentiment swept the indices down the first three days this week, but today, the indices more than recouped the losses...the Nasdaq and Dow are for the week, and the S&P 500 is down about 1 point...there wasn't any specific news to account for the gains...rather, confidence simply seemed to be restored when the indices did not break down after an up open, and demand remained strong through the day...
the early economic data was not bad, but was mostly as expected: new claims were little changed at 339,000, GDP was unrevised and as expected at 4.1% for the fourth quarter, and existing home sales rose 2%, right in line with forecasts...earnings reports weren't the catalyst either, as there weren't many...A.G. Edwards (AGE 36.66 +1.99) was notable for a strong report...oil prices declined significantly, and that certainly was a help...but overall, the market remains subject to volatile swings based on short-term sentiment...today's action is generally seen as a reaction to an oversold market rather than the start of something big...gains were extremely broad based...energy was the only weak sector...

volume was moderate in today's bounce-back action...